Liquefied Natural Gas Demand in Asia
The global liquefied natural gas (LNG) market has been undergoing sustained and fundamental transformation since 2010. A combination of forces led by the revolution in shale gas production in the United States (US), rising global LNG use, diverging natural gas and crude oil prices, and demand shifts from traditional Northeast Asian countries (Japan, Republic of Korea, and Taiwan) to China, Southeast Asia, and South Asia present new challenges and opportunities for producing and consuming regions. The LNG market is already experiencing rising competition from the US and Australia in a market traditionally reliant on suppliers from Asia and the Middle East. While new competitive forces present challenges to producers, the development of a broad-based liquid and flexible LNG market can deliver substantial economic, environmental, and energy security benefits throughout the region. The challenge for policymakers in securing the widespread benefits of rising supplies of LNG is to transform potential LNG demand in Asia into real demand. This study delves deeply into these challenges and draws policy implications for supporting a growing market for LNG in this region.